WINNIPEG – Saying their first quarter results reflect “the slower economy and lower advertising volume”, Canwest Global Communications posted a loss of $33 million, compared with a profit of $41 million in the same period last year.
In the quarter that ended November 30, 2008 Canwest reported that revenues increased 2% to $886 million, but operating profit dropped by 9% to $204 million.
Canadian television operations saw first quarter revenues of $306 million, down $2 million, or about 1% from the previous year. Australian Network Ten’s first quarter revenue of $202 million decreased 17% from $242 million during the same quarter in the year prior.
Looking forward, the company predicted that advertising revenues “will continue to be negatively impacted by persisting uncertain economic conditions”, and that conventional advertising and publishing will be at levels below last year. It said that it anticipates growth with its specialty channels and digital sectors.
Canwest said that it “remains focused” on reducing expenses, improving efficiencies and “protecting” its core assets, but cautioned that it may not be able “to meet certain financial covenants in its credit facilities” this year. It pledged to improve profit and reduce debt in order to comply with its existing quarterly total financial leverage ratio covenants in fiscal 2009.
